How Punitive Damages Work in Nevada?

Nevada's law on punitive damages is found under Nevada Revised Statutes 42.005. Punitive damages can be described as compensation offered in certain kinds of personal injury lawsuits, such as negligence cases. Punitive damages can only be awarded to victims under certain circumstances, as outlined in Nevada Code 42.005. Read on to learn more about how punitive damages work in Nevada.

Definition of Punitive Damages Under Nevada Laws

Punitive damages are monetary awards awarded by the jury to penalize an offender in a civil action. These damages are also known as "exemplary damages," because they are meant to serve as an example.

As opposed to compensatory damages, which are designed to put the victim back in their financial position after an accident, exemplary or punitive damages are awarded to deter future similar conduct. In most cases, compensatory damages consist of monetary payment for medical expenses, reimbursement for lost wages, payment for mental anguish, and compensation for lost pleasure in life.

Most of the time, punitive damages can't be granted. A plaintiff in a personal injury case must prove that the offender was being more than just negligent to claim punitive/exemplary damages. Negligence often refers to carelessness.

For the complainant to be eligible for punitive damages, they must demonstrate that the accused was beyond being negligent. This often entails proving that the defendant acted with intent to cause harm, carelessly or knowingly. Punitive damages are rarely used in vehicle accident cases, nevertheless, they could be used in drunk driving cases. That includes situations where the accused driver was texting while behind the wheel.

Nevada Law on Punitive Damages

Punitive damages are regulated by statutes established by the Nevada legislature. You can find the relevant legislation in NRS Chapter 42. According to NRS 42.005, a court could decide to punish an offender who has been convicted of fraud, oppression, or malice (implied or express). These words are defined as follows under NRS 42.001:

Definitions and Exceptions Under NRS 42.001

The following provisions, utilized in this section, unless the situation dictates otherwise and unless as specifically stipulated under NRS 42.005 subsection 5:

• The term conscious disregard refers to knowing that a wrongful act would likely have negative consequences yet choosing to do nothing to stop it from happening
• The term fraud refers to a deliberate misrepresentation, deceit, or suppression of an important truth that was apparent to the perpetrator to deny another person their property or rights or harm that person in some other way
• Malice, implied or expressed, refers to behavior that is designed to harm a person or abhorrent behavior that is done with the knowledge of how it would affect the safety or rights of other people
• Oppression refers to reprehensible behavior that exposes an individual to harsh and unjustified suffering with a conscious contempt for the individual's rights

Examples of Punitive Damages Cases

Typically, punitive damages are given when an offender engages in fraud or another serious act that negatively impacts society as a whole.

Cases that call for punitive damages could, for instance, be:

• Cases in which faulty vehicle parts have resulted in personal injury. Punitive damages could be granted in these situations since it's crucial to hold the manufacturer accountable for supplying consumers with hazardous products
• Environmental pollution cases. This could apply to organizations or people purposely harming others by their acts (such as disposing of toxic garbage in a waterway). Punitive damage rulings in these circumstances serve as a deterrent to future negligence by conveying the notion that such behavior won't be accepted

Nevada Places Several Limits on Punitive Damages

According to NRS 42.005, punitive damages cannot be awarded over:

• 3 times the claimant's compensatory damages if those damages total $100,000 or higher, or
• $300,000 when the claimant's compensatory damages total below $100,000

The following actions, however, are not subject to these limitations:

• A producer, distributor, or vendor of a faulty product
• An insurer that breaches its duty to offer insurance in bad faith
• An individual who violates a federal or state law against discriminatory housing tactics could be subject to punitive damages that exceed the thresholds outlined in the first subsection of NRS 42.005
• An individual for defamation
• An individual for losses or harm brought on by the release, disposal, or spillage of a radioactive, poisonous, or hazardous substance or waste

Procedure for Collecting Punitive Damages Awards

There are three steps to receiving punitive damages in your personal injury or accident lawsuit in Nevada:

Your Case Must Be Successful

To receive exemplary damages, you need to ask for them and have the judge or jury find that such an award is appropriate.

The level of the punitive awards you get will be decided in another hearing if the jury determines that the damages are justified.

Winning the Case

In Nevada, showing that someone was negligent can be done in several different ways. Additionally, you have a right to compensatory damages under the comparative negligence (shared liability) law provided another party bears a greater than 50% share of the blame for the injuries suffered.

To be successful, nonetheless, you must prove a few things that are unique to your reason for action. The level of complexity varies widely. For instance, proving four elements is necessary to succeed in a defamation action in Nevada:

• You were the victim of a defamatory statement perpetrated by the defendant
• An unrestricted disclosure of that statement to a third party
• Wrongdoing that at least constitutes neglect; and
• Actual or alleged damages

Proving that Punitive Damages are Justified

To receive punitive damages, you have to show that the offender acted fraudulently, oppressively, or maliciously. This often calls for evidence that the accused acted willfully (or at a minimum with a deliberate contempt for the safety of other people).

Documents (such as memoranda or emails) that demonstrate the offender's intention can be used for this. You could also use testimonies to prove this.

It could be challenging to demonstrate that the accused acted fraudulently, maliciously, or oppressively. A knowledgeable Las Vegas injury attorney will have access to a variety of resources to get the necessary proof. Among these include conducting interviews with prospective witnesses and meticulously examining documents in search of the required proof — or proof showing a lack of documents.

There are situations when this alone will be sufficient to enable your lawyer to resolve your case outside of the courtroom for a bigger sum than you had anticipated. However, if the matter does get to trial, you'll have to formally ask for punitive damages and prove that it is justified. Punitive damages could be paid in full upfront or over a period as a component of an organized settlement, based on the settlement's conditions.

The Punitive Damages Hearing

The primary objective of the legal proceeding at this point is not on the damages you sustained, but rather on the accused person's conduct.

If the case against the accused is being heard by a jury, the members of the jury don't have access to information on the maximum amount that can be awarded or the amount that the defendant is capable of paying. They will merely issue an exclusive verdict that states:

• If the defendant is required to pay the punitive damages, and
• In this instance, what amount the jury believes to be reasonable and just

After that, the court will decide whether or not it is necessary to lower the punitive damages to maintain them within the limits of the law. The judge can additionally consider the offender's financial situation at this point in the proceeding and lower the amount if the accused is incapable of paying.

Differences Between Punitive Damages and Other Forms of Damages

Exemplary or punitive damages are not determined by the actual losses you suffered. That's what distinguishes punitive damages from other forms of damages. Economic damages, such as medical costs and lost earnings, are calculated using a straightforward mathematical formula based on actual damages. The extent of your injuries will determine the amount of non-monetary compensation you receive. They're intended to make up for any suffering and pain sustained.

Punitive damages, as opposed to the aforementioned types of damages, are not intended to make up for anything. Instead, they are meant to convey some sort of message. They aren't predicated on the damages you've sustained. Rather, they dwell on the defendant's conduct and how they have resulted in emotional and physical pain.

Frequently Asked Questions On Nevada Punitive Damages

Below are some of the most commonly asked questions on punitive damages in Nevada:

When Can Punitive Damages Be Awarded Under Nevada Law?

In Nevada, the burden of proof for establishing that a plaintiff is entitled to exemplary awards is whether or not it can be shown, via the presentation of proof that is both clear and compelling, that the behavior of the offender constituted oppression, malice, or fraud. This is under Nevada Revised Statutes Section 42.005(i).

According to Nevada legislation, an employer isn't responsible for punitive or exemplary damages brought on by an employee's conduct unless:

• That employee was hired despite the employer's understanding that they were unqualified for the job and with deliberate contempt for other people's safety or rights
• The employee's unlawful behavior for which punitive damages are granted was explicitly approved by or accepted by their employer
• An employer is at fault for any implied or expressed oppression, malice, or fraud under Nevada Revised Statutes Section 42.007(i)

Additionally, when the boss is a business, they are not responsible for punitive or exemplary damages except if at least one of the aforementioned conditions is satisfied by a director, an officer, or a managing representative of the business who was specifically designated to make decisions or approve the worker's actions on the company's behalf.

Does My Case Qualify for Punitive Damages?

If the defendant's actions are particularly outrageous beyond what would be expected in a case of negligence, then you could be entitled to punitive damages. Punitive damages are determined by the defendant's acts, which are taken into account when giving the verdict. It is of no significance how severely the victims were injured.

Rather, you could be entitled to punitive damages irrespective of the severity of your losses if the offender acted with fraud, oppression, or malice. Although exemplary awards are intended to punish the offender rather than to recompense the victim, the victim is nonetheless awarded the sum of money.

What Is the Burden to Prove Punitive Damages in Nevada Personal Injury Cases?

In Nevada, the burden of proof for punitive damages is to present strong, conclusive evidence. This implies that in order to prove that the offender engaged in oppression, fraud, or malice, the victim has to show that it is undoubtedly true. A greater burden of proof is required to establish carelessness under the compelling and clear evidence standard.

Punitive damages are more difficult to obtain than damages for compensation in cases involving negligence. That doesn't imply, though, that you should not attempt to obtain punitive damages. You can demonstrate that exemplary awards are justified and warranted in the claim by meticulously constructing the facts of your case.

Are Nevada's Punitive Damages Capped?

Yes, certain kinds of lawsuits in Nevada have a cap on punitive damages. In some Nevada cases involving torts, punitive damages are limited under NRS 42.005. The limitations vary with the magnitude of damages for compensation:

If the losses amount to $100,000 or higher, the victim could be awarded punitive damages equal to 3 times their monetary compensation.

If the losses are under $100,000, the victim could be awarded punitive damages of a maximum of $300,000.

Cases in which punitive damages are unlimited include those involving faulty products, discriminatory housing policies, bad faith coverage, injuries brought on by hazardous or toxic chemicals, and defamation. If the case qualifies and there is no limit on punitive damages, you are entitled to whatever awards the jury deems appropriate.

Who Decides Punitive Damages in Nevada?

In Nevada, a jury decides punitive damages. The jury first determines whether the person accused is answerable for the plaintiff's damages. Additionally, they choose whether to grant punitive damages. If the jury decides that the accused is responsible for the damages, a separate hearing will be held to decide on the amount of money that will be awarded.

The established damage caps are not disclosed to the jury before it renders its judgment. They are only responsible for determining the total amount of punitive damages, after which the court will, if necessary, lower the amount.

Does the Jury Consider the Defendant's Financial Situation When Determining Punitive Damages to Award?

Yes, the jury could take the defendant's financial situation into account when determining the punitive damages to award. When deciding whether to impose punitive damages, they are not provided with information about the accused person's financial status. However, the defendant's financial situation is admissible evidence that should be considered when deciding on a suitable amount.

Can a Judge Lower the Exemplary Awards?

Yes, a judge has the authority to lower punitive damages. The United States Constitution protects citizens against arbitrary and excessive punishments. Punitive or exemplary damages are forms of monetary fines imposed by the civil court. A judge could reduce or reverse a jury's verdict of punitive damages due to U.S. due process provisions that forbid disproportionate punishment.

The court considers the severity of the conduct, the ratio of punitive to compensatory awards, and the punishments meted out in comparable situations.

Are Punitive Damages Available in Labor Claims?

There's an extra hoop to go through if you're bringing a lawsuit against a company because of the wrongdoing of their worker. If you want to collect punitive damages from an individual employer, you must demonstrate that:

• That employer was aware that the worker posed a threat to the well-being or rights of other people
• The employee's unlawful behavior was sanctioned or permitted by their employer
• The employer directly engaged in fraud, oppression, or malice

Employers that are corporations are not responsible for punitive awards unless:

• One of the aforementioned offenses was committed by an officer, managing representative of the business, or director, and
• That individual had the power to instruct or approve the employee's actions on the company's behalf

Find a Personal Injury Law Firm Near Me

If you have sustained injuries as a consequence of another person's negligence, you have the legal right to seek compensation for your losses. In cases where the defendant acted outrageously, the court could award punitive damages to send a message to other offenders and to deter such acts.

If you are seeking legal counsel, you can rely on us at the Las Vegas Personal Injury Attorney Law Firm. We bring expertise, skill, and dedication to the cases of personal injury we take on. If you have suffered injuries, do not hesitate, we are available 24 hours a day, 7 days a week, to take your call. Call us today at 702-996-1224.